China Captures African Markets
Tag: Africa, China, market
Summary: To further boost trade with Africa, China has declared to exempt import tariffs on certain commodities from 25 African countries so as to facilitate their entry into the Chinese market.
China is emerging as a major investor in the African continent by forging trade ties with as many as 40 African countries and bagging lucrative deals...
The positive business environment in Africa has already been noticed by the international community and investments into Africa have been flowing from various countries around the world. China, one of the fastest growing economies in the world, has already started making inroads into the African markets and established a special China-Africa Business platform TOAFRICA.NET recently. Trade between China and Africa has been registering an unprecedented growth and stands at approximately $50 billion. Trade analysts expect this figure to reach a whopping $110 million by 2008.
More than 40 African countries have trade agreements with China and Chinese companies are engaged in a wide range of economic activities – a railway project in Nigeria, a Sheraton hotel in Algeria and a mobile telephone network in Tunisia – China is all over Africa now.
China’s growing involvement in Africa is necessitated by it’s growing need for natural resources, in particular for imported oil, of which 25 per cent now comes from Africa. As the world’s largest oil importer after the United States, China has oil interests in Sudan, Chad, Nigeria, Angola, and Gabon.
China National Petroleum Company has acquired a 40 per cent stake in one of Sudan’s major oil exploration project and Chinese workers built a 1,600 kilometre long pipeline in Sudan in just 11 months. In fact, China has been actively partnering with African governemnts to meet its rising demand for oil. The Chinese government has also extended a soft loan of $2billion to Angola to secure a regular supply of 10,00 barels of oil per day.
China is also a major investor in the lucrative copper industry of Zambia and Congo. It is a major buyer of timber from Gabon, Cameroon and Mozambique. The Chinese also procure platinum, iron and coal from Africa to meet the rising demand of its booming industrial sector.
In Zimbabwe, China has reportedly finalised a deal to supply the African nation with fighter jets and other military goods worth $200 million. china africa businessTrade and tourism ties between China and Zimbabwe have been flourishing in recent years. A growing number of Chinese citizens are now travelling to Zimbabwe to enjoy the many tourist attractions that the country of Robert Mugabe as to offer. The increased trade and tourism ties between Zimbabwe and China has resulted in the announcement of twice-weekly direct flights between Harare and Beijing. In fact, speculation is rife that most western farmers in Zimbabwe will eventually be replaced by Chinese investors eager to invest in Zimbawe’s ailing tobbaco farming industry. Chinese companies are also reportedly vying to gain a major share of Zimbabwe’s lucrative mineral extraction industry.